UPDATE: Lululemon Athletica Inc. (LULU) Upside Derisks the Story, PT Raised to $419 at Morgan Stanley
Morgan Stanley analyst Kimberly C. Greenberger raised the price target on Lululemon Athletica Inc. (NASDAQ: LULU) to $419.00 (from $411.00) after the company delivered another beat & updated guidance to higher & more profitable growth vs. pre-Covid levels.
The analyst believes this makes LULU’s high valuation feel merited, stating "management indicated it 1) expects Vietnam factory re-openings to begin in mid-September, in-line with our industry channel checks, & 2) confirmed it is diligently working to shift production out of Vietnam where possible to mitigate potential 2H21 risk." "Taken together, better-than-expected 2Q21 results & raised FY guidance confirm macro factors aren’t impairing LULU’s ability to deliver beats & raises in-line with historical trend, the key investor concern heading into the print." No change to the Equalweight rating.